By Anit Mukherjee, Laura Bermeo, Yuko Okamura, Jimmy Vulembera, and Paul Bance
EXECUTIVE SUMMARY
The application of non-conventional approaches in social assistance notably accelerated over the past few years. The use of disruptive technologies is not new, but the availability of “big data”— including satellite imagery and call detail records—converged with the unprecedented need for urgent new social assistance responses due to the global pandemic.
Yet, the application of these non-conventional approaches is still limited, with many unknowns. The application of non-conventional approaches is primarily occurring in low-income countries with less developed administrative data systems and social protection systems. They are not yet rigorously evaluated, and there are still limited resources with which to comprehensively summarize the nuts and bolts of program design and operation for the practitioners.
To that effect, this case study aims to harvest knowledge from a recent practice delivering emergency cash transfers using non-traditional approaches. Specifically, this paper documents in depth the experience of Democratic Republic of the Congo’s (DRC), the Solidarity through Economic Transfers Against the Poverty in Kinshasa (STEP-KIN) program. In order to overcome severe data and operational constraints, this program used a combination of digital tools to deliver assistance to vulnerable urban populations during COVID-19, bypassing traditional processes.
This paper aims to answer key and practical operational questions, including the prerequisites of such digital first approaches. The recourse to a new digital mode of social assistance required an enabling institutional arrangement including partnerships with mobile network operators (MNOs), protocols/agreements surrounding the use of mobile data for this purpose, and financial regulatory reforms on KYC requirement. With all preparations complete, the program transferred the first payments in March 2021, one year after the first case of COVID-19 was detected in the country.
The paper also walks through the implementation steps, adjusted for a simplified and speedy implementation compared to traditional methods. For example, STEP-KIN used hotspots and vulnerability map (instead of small area estimates as per conventional method) and mobile phone data (instead of social registry and household visits) to identify target areas and populations. Consequently, an MNO sent mass messages to the screened phone numbers, and interested recipients applied and enrolled to the program on a first-come, first-serve basis, without any further prioritization among applicants.
To date, 300,000 people have benefited from this very first social assistance intervention in the nation’s capital, with an expansion plan. The preliminary results based on the post-distribution survey show that, overall, the program is achieving its objective and reaching the people in need. Cost-efficiency appears to be comparable to new and standard cash transfer programs. Encouraged by these initial iv Digital-First Approach to Emergency Cash Transfers: STEP-KIN in the Democratic Republic of Congo results, the government plans to double the program coverage, with considerations on improvements in a post-COVID environment.
The paper concludes with lessons learned and considerations of adapting these nonconventional approaches in delivering social assistance beyond emergency settings. First and foremost, political commitment is the key driver for this type of new and transformative programs, which requires policy reforms and bringing MNOs on board. In terms of program performance metrics, speed trumps accuracy for emergency responses. However, the targeting accuracy of digital approaches, which is still unknown, needs to be assessed in comparison with traditional approaches. More fundamentally, the mobile number based identification strategy excludes certain segments of the population, including people without mobile phone who are likely to be the poorest, women and rural populations whose mobile ownership rate is lower, and mobile users of certain carriers which are not part of the program. It is also important to highlight that these innovative approaches underscored the irreplaceability of conventional approaches, particularly the foundational infrastructures and traditional ways of doing business.
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